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Act CXXXVI of 2007
on the Prevention and Combating of Money Laundering and Terrorist Financing
The objective of this Act is to effectively enforce the provisions on combating money laundering and
terrorist financing with a view to preventing the laundering of money and other financial means derived from
criminal activities through the financial system, the capital markets and other areas exposed to potential
money laundering operations, as well as to help combat the flow of funds and other financial means used in
financing terrorism.
In order to achieve the aforementioned objectives Parliament has adopted the following Act:
Scope
Section 1
(1) With the exceptions set out in Subsections (3)-(5) - this Act shall apply to persons who are engaged in
the territory of the Republic of Hungary in:
a) the provision of financial services or in activities auxiliary to financial services;
b) the provision of investment services, in activities auxiliary to investment services or in providing
investment fund management services;
c) the provision of insurance services, insurance agency or occupational retirement provision;
d) the provision of commodity exchange services;
e) the service of accepting and delivering international postal money orders;
f) the provision of real estate agency or brokering and any related services;
g) the provision of auditing services;
h) the provision of accountancy (bookkeeping), tax consulting services whether or not certified, or tax
advisory activities under agency or service contract;
i) the operation of a casino or electronic casino;
j) the trading in precious metals or articles made of precious metals;
k) the trading in goods, involving a cash payment in the amount of three million six hundred thousand
forints or more;
l) the provision of voluntary mutual insurance fund services;
m) the provision of legal counsel or notary services.
(2) This Act shall apply to:
a) customers of service providers;
b) directors, managers, and employees of service providers and their participating family members.
(3) Service providers engaged in trading in goods may not - within the scope of these activities - accept
any cash payment in the amount of three million six hundred thousand forints or more, unless they undertake
to discharge the obligations conferred upon service providers by this Act in accordance with Subsection (4)
of Section 33.
(4) This Act shall not apply to:
a) the agents described in Paragraph b) of Point 12 of Chapter I of Schedule No. 2 to Act CXII of 1996
on Credit Institutions and Financial Enterprises (hereinafter referred to as “CIFE”);
b) the tied insurance intermediaries described in Subsection (4) of Section 33 of Act LX of 2003 on
Insurance Institutions and the Insurance Business (hereinafter referred to as “Insurance Act”);
c) the independent insurance intermediaries described in Subsection (4) of Section 33 of the Insurance Act
as regards their activities relating to the field of non-life insurance under Part A of Schedule No. 1 to the
Insurance Act;
d) insurance companies, if authorized to pursue only the activities relating to the field of non-life insurance
under Part A of Schedule No. 1 to the Insurance Act, and the insurance companies authorized to engage in
activities in the field of non-life insurance under Part A of Schedule No. 1 to the Insurance Act and at the
same time in activities in the field of life assurance under Schedule No. 2 to the Insurance Act, as regards
their activities relating to the field of non-life insurance.
(5) This Act shall not apply to the activity defined in Paragraph a) of Subsection (1), if carried out by the
Magyar Nemzeti Bank (hereinafter referred to as “MNB”), with the exception of the provision of services
relating to the transfer of funds under Section 22 and Section 2.
Section 2
Section 22 shall apply to the service providers who:
a) are engaged in the activities referred to in Paragraphs a)-b) and e) of Subsection (1) of Section 1 of this
Act; and
b) provide services relating to the transfer of funds within the Republic of Hungary under Point 7 of
Article 2 of Regulation (EC) No. 1781/2006 of the European Parliament and of the Council of 15 November
2006 on information on the payer accompanying the transfers of funds (hereinafter referred to as
“Regulation”).
Interpretative Provisions
Section 3
For the purposes of this Act:
a) „tax adviser, tax consultant, certified tax consultant‟ shall mean any person who has the qualifications
described under specific other legislation and is authorized to engage in such activities, and who is listed in
the register of tax advisers, tax consultants and certified tax consultants in accordance with the provisions of
specific other legislation;
b) „identification‟ shall mean the recording in writing of the data specified in Subsections (2)-(3) of
Section 7, and in Subsections (2)-(3) of Section 8;
c) „European Union‟ shall mean the European Union and the European Economic Area;
d) „Member State of the European Union‟ shall mean any Member State of the European Union and States
who are parties to the Agreement on the European Economic Area;
e) „shell bank‟ shall mean a service provider engaged in the activity defined in Paragraph a) of Subsection
(1) of Section 1, incorporated in a jurisdiction in which it has no physical presence, and to which supervision
on a consolidated basis shall not apply;
f) „network‟ shall mean the larger structure to which the service providers engaged in the activity defined
in Paragraphs g)-h) and m) of Subsection (1) of Section 1 belong and which shares common ownership,
management or compliance control;
g) „third country‟ shall mean any country that is not a member of the European Union;
h) „real estate agency or brokering‟ shall mean the business of mediation of the transfer or lease of real
estate properties, including preliminary services for such transactions, real estate appraisal, real estate
investment and real estate development;
i) „trading in goods‟ shall mean the supply of goods by way of business to buyers, traders in goods and
manufacturers;
j) „accounting services‟ shall mean the activities defined in Subsections (1)-(2) of Section 150 of Act C of
2000 on Accounting;
k) „correspondent banking services‟ shall mean an arrangement under which one credit institution
maintains an account for another credit institution to provide money transfers, payments and other financial
and investment services.
l) „national financial intelligence unit‟ shall mean a department of the customs authority appointed under
specific other legislation and functioning as the national financial intelligence unit;
m) „official document suitable for identification purposes‟ shall mean a personal identification document
(identity card), passport, or driver‟s license card;
n) „verification of identity‟ shall mean the procedure to verify the identity of the customer, proxy or other
authorized representative in accordance with Subsections (4)-(6) of Section 7, and to verify the identity of the
beneficial owner in accordance with Subsection (5) of Section 8;
o) „service provider‟ shall mean the person or body engaged in the activity referred to in Subsection (1) of
Section 1;
p) „director of a service provider‟ shall mean any natural person acting for the benefit of the legal person
or business association lacking the legal status of a legal person based on a power of representation, an
authority to take decisions on behalf of or an authority to exercise control within the legal person or business
association lacking the legal status of a legal person;
q) „series of related transactions‟ shall mean:
qa) the transactions for which the customer places an order within a period of one year under the same title
for the same subject matter;
qb) in connection with currency exchange services, the transactions conducted on behalf of a customer
within a period of one week;
qc) as regards the service providers engaged in the activity referred to in Paragraph k) of Subsection (1) of
Section 1, installment payments and payment orders based on deferred payment facilities;
r) „beneficial owner‟ shall mean:
ra) the natural person who owns or controls at least twenty-five per cent of the shares or voting rights in a
legal person or business association lacking the legal status of a legal person, if that legal person or business
association lacking the legal status of a legal person is not listed on a regulated market and is subject to
disclosure requirements consistent with Community legislation or subject to equivalent international
standards;
rb) the natural person who has a dominant influence in a legal person or business association lacking the
legal status of a legal person as defined in Subsection (2) of Section 685/B of Act IV of 1959 on the Civil
Code of the Republic of Hungary (hereinafter referred to as “Civil Code”);
rc) the natural person on whose behalf a transaction is carried out; and
rd) in the case of foundations:
1. where the future beneficiaries have already been determined, the natural person(s) who is the
beneficiary of twenty-five per cent or more of the property of the foundation;
2. where the individuals that benefit from the foundation have yet to be determined, the class of natural
persons in whose main interest the foundation is set up or operates or
3. the natural person(s) who exercises control in the management of the foundation or exercises control
over twenty-five per cent of the property of a foundation, or who is authorized to represent the foundation;
s) „customer‟ shall mean any person contracting the services of a service provider in writing within the
meaning of the activities described in Subsection (1) of Section 1, or who places an order with the service
provider to carry out a transaction;
t) „customer due diligence‟ shall mean the implementation of the customer due diligence measures
specified under Sections 7-10 in the case referred to in Section 6;
u) „transaction order‟ shall mean a temporary contractual relationship based on a written agreement
between a customer and a service provider pertaining to the services of the service provider falling within its
professional activities;
v) „business relationship‟ shall mean:
va) a long-term contractual relationship based on a written agreement between a customer and a service
provider pertaining to the services of the service provider within the meaning of the activities described in
Subsection (1) of Section 1;
vb) the activities of a notary public concerning the procedure defined under Subsection (2) of Section 36
or
vc) as regards the service providers engaged in the activity referred to in Paragraph i) of Subsection (1) of
Section 1, the long-term contractual relationship created when first entering the casino or electronic casino.
Section 4
(1) For the purposes of this Act, „politically exposed persons‟ means natural persons residing in another
Member State or in a third country who are or have been entrusted with prominent public functions within
one year before the implementation of customer due diligence measures, and immediate family members, or
persons known to be close associates, of such persons.
(2) For the purposes of Subsection (1), „natural persons who are or have been entrusted with prominent
public functions‟ shall include the following:
a) heads of State, heads of government, ministers and deputy or assistant ministers;
b) members of parliaments;
c) members of supreme courts, of constitutional courts or of other high-level judicial bodies whose
decisions are not subject to further appeal;
d) the head of the court of auditors, members of courts of auditors or of the boards of central banks;
e) ambassadors, chargés d‟affaires and high-ranking officers in the armed forces;
f) members of the administrative, management or supervisory bodies of State-owned enterprises.
(3) For the purposes of Subsection (1), close relative shall have the meaning defined in Paragraph b) of
Section 685 of the Civil Code, including domestic partners.
(4) For the purposes of Subsection (1), persons known to be close associates of politically exposed persons
shall include the following:
a) any natural person who is known to have joint beneficial ownership of a legal person or business
association lacking the legal status of a legal person, or any other close business relations, with a person
referred to in Subsection (2);
b) any natural person who has sole beneficial ownership of a legal person or business association lacking
the legal status of a legal person which is known to have been set up for the benefit de facto of the person
referred to in Subsection (2).
Section 5
(2) For the purposes of this Act, „supervisory body‟ means:
a) the Hungarian Financial Supervisory Authority (hereinafter referred to as “Authority”) with respect to
the service providers engaged in the activities referred to in Paragraphs a)-e) and l) of Subsection (1) of
Section 1, with the exception set out under Paragraph b);
b) the MNB with regard to money processing operations of activities auxiliary to financial services with
respect to Paragraph a) of Subsection (1) of Section 1;
c) the state tax authority with respect to the service providers engaged in the activity referred to in
Paragraph i) of Subsection (1) of Section 1;
d) the Chamber of Hungarian Auditors with respect to the service providers engaged in the activity
referred to in Paragraph g) of Subsection (1) of Section 1;
e) with respect to the service providers engaged in the activity referred to in Paragraph m) of Subsection
(1) of Section 1, in accordance with the special provisions set out in this Act pertaining to independent
lawyers and law offices (hereinafter referred to as “lawyers”) and notaries public:
ea) the competent regional bar association in which the lawyer in question is registered (hereinafter
referred to as “regional bar association”);
eb) the competent regional branch of the Association in which the notary public in question is registered
(hereinafter referred to as “regional branch);
f) with respect to the service providers engaged in the activities referred to in Paragraphs j) and k) of
Subsection (1) of Section 1, the authority of trade and commerce;
g) with respect to the service providers engaged in the activities referred to in Paragraphs f) and h) of
Subsection (1) of Section 1, the national financial intelligence unit.
Customer Due Diligence
Section 6
(1) Service providers shall apply customer due diligence measures in the following cases:
a) when establishing a business relationship;
b) with the exception set out in Section 17, when carrying out occasional transactions amounting to three
million six hundred thousand forints or more;
c) when there is any information, fact or circumstance giving rise to suspicion of money laundering or
terrorist financing, where the due diligence measures referred to in Paragraphs a)-b) have not been carried out
yet;
d) when there are doubts about the veracity or adequacy of previously obtained customer identification
data.
(2) The obligation of taking the due diligence measures specified in Paragraph b) of Subsection (1) shall
also apply to any series of related transactions with a combined value of three million six hundred thousand
forints or more. In this case, due diligence measures shall be carried out in connection with the transaction
that brings the total value of the transactions to the threshold of three million six hundred thousand forints.
Customer Due Diligence
Measures
Section 7
(1) In connection with what is contained in Subsection (1) of Section 6, service providers shall apply due
diligence measures for identifying the customer, the customer‟s agent, proxy or other authorized
representative and verifying their identity.
(2) In the identification procedure, service providers are required to record the following particulars of
customers:
a) in connection with natural persons:
aa) surname and forename (birth name);
ab) address;
ac) nationality;
ad) number and type of identification document;
ae) in respect of foreign nationals, the place of abode in Hungary;
b) in connection with legal persons and business associations lacking the legal status of a legal person:
ba) full name and abbreviated name;
bb) address of corporate headquarters and, for foreign-registered companies, the address of the Hungarian
branch office;
bc) the registered number of legal persons listed in the companies register, or the number of the resolution
adopted on the foundation (registration, admission into the register) of other legal persons, or their
registration number.
(3) In addition to what is contained in Subsection (2), in the identification procedure service providers may
record the following particulars of customers where it is deemed necessary for the identification of the
customer, the business relationship and the transaction order, in the cases specified according to the internal
policies referred to in Section 33 based on the nature of the business relationship or on the type and value of
the transaction and on the customer‟s circumstances, with a view to the prevention and combating of money
laundering and terrorist financing:
a) in connection with natural persons:
aa) date and place of birth;
ab) mother‟s name;
b) in connection with legal persons and business associations lacking the legal status of a legal person:
ba) the principal activity;
bb) name and position of authorized representatives;
bc) identification data of the agent for service of process.
(4) For the purposes of identification and verification procedures, service providers must require the
following documents to be presented:
a) in connection with natural persons:
aa) personal identification document (official identity card) and official address card of Hungarian
citizens;
ab) passport or personal identity card for foreign nationals, if it embodies an authorization to reside in
Hungary, or a document evidencing the right of residence or a valid residence permit;
ac)
b) for legal persons and business associations lacking the legal status of a legal person, in addition to the
documents of the persons described in Paragraph a) who are authorized to act in its name and on its behalf, a
document issued within thirty days to date, to verify:
ba) if a resident economic operator, that it has been registered by the court of registry, or that the
application for registration has been submitted; if a private entrepreneur, that he has a private entrepreneur‟s
license, or that the private entrepreneur has submitted an application to the competent regional notary for a
private entrepreneur‟s license;
bb) for other resident legal persons whose existence is subject to registration by an authority or the court,
the document of registration;
bc) for non-resident legal persons and business associations lacking the legal status of a legal person, the
document proving that the person or body has been registered under the law of the country in which it is
established;
c) the articles of incorporation (articles of association, charter document) of legal persons and business
associations lacking the legal status of a legal person that have not yet been registered by the registrar of
companies, court or appropriate authority.
(5) In the application of Paragraph c) of Subsection (4), the legal person or business association lacking
the legal status of a legal person shall produce documentary evidence of having been registered by the
registrar of companies, court or appropriate authority, within thirty days after the fact, and the service
provider must enter the registered number or registration number into its records.
(6) For the purposes of identification and verification procedures, service providers must check the
validity of the identification documents mentioned under Subsection (4).
Section 8
(1) In connection with Subsection (1) of Section 6, the customer is required to provide a written statement
to the service provider as to whether he is acting in his own name or in the name and on behalf of the
beneficial owner.
(2) If the customer‟s above-specified written statement indicates that he is acting in the name and on
behalf of the beneficial owner, it shall contain the particulars of the beneficial owner specified in
Subparagraphs aa)-ac) of Paragraph a) of Subsection (2) of Section 7.
(3) In addition to what is contained in Subsection (2), the service provider may request the customer to
supply the particulars of the beneficial owner specified in Subparagraphs ad)-ae) of Paragraph a) of
Subsection (2) and Paragraph a) of Subsection (3) of Section 7 where it is deemed necessary for the
identification of the customer, the business relationship and the transaction order, in the cases specified
according to the internal policies referred to in Section 33 based on the nature of the business relationship or
on the type and value of the transaction and on the customer‟s circumstances, with a view to the prevention
and combating of money laundering and terrorist financing.
(4) Where there is any doubt concerning the identity of the beneficial owner, the service provider shall
request the customer to reconfirm the identity of the beneficial owner by means of a written statement.
(5) Where there is any doubt concerning the identity of the beneficial owner, the service provider must
take measures to check the beneficial owner‟s identification data in records and registers which are publicly
available in accordance with legal regulations.
Section 9
(1) In connection with Subsection (1) of Section 6, the service provider shall record the following
information pertaining to the business relationship and the transaction order:
a) regarding business relationships, the type, the subject matter and the term of the contract;
b) regarding transaction orders, the subject matter and the value of the transaction.
(2) In addition to what is contained in Subsection (1), the service provider may record the particulars of
the transfer (place, time, mode) where it is deemed necessary for the identification of the customer, the
business relationship and the transaction order, in the cases specified according to the internal policies
referred to in Section 33 based on the nature of the business relationship or on the type and value of the
transaction and on the customer‟s circumstances, with a view to the prevention and combating of money
laundering and terrorist financing.
Section 10
(1) In due observation of the relevant legal regulations, service providers shall conduct ongoing
monitoring of the business relationship including scrutiny of transactions undertaken throughout the course
of that relationship to ensure that the transactions being conducted are consistent with the information the
service provider has in its possession on the customer in accordance with the relevant regulations.
(2) Service providers shall ensure that documents, data or information held in connection with business
relationships are kept up-to-date.
(3) During the life of the business relationship, the customer is required to notify the service provider
concerning any change in the data and information supplied for the purposes of due diligence measures or
those concerning the beneficial owner within five working days of the day when such information is
received.
(4) In connection with the obligation set out in Subsection (3), the service provider shall advise its
customers concerning their obligation to report any and all changes in their particulars.
(5) Where there is no movement of any kind in an account maintained by a service provider engaged in the
activities referred to in Paragraphs a)-b), d) and l) of Subsection (1) of Section 1 over a period of two
calendar years, apart from arrangements that take several years to mature, the service provider shall request
the customer in writing - within thirty days or in the next account statement - to report the changes in his
particulars that may have occurred during the aforementioned period.
Section 11
(1) Save where Subsections (2)-(5) and (8) apply, service providers are required to ensure that the
verification of the identity of the customer and the beneficial owner takes place before the establishment of a
business relationship or the carrying-out of the transaction.
(2) Service providers may be allowed to carry out the verification of the identity of the customer and the
beneficial owner during the establishment of a business relationship if this is necessary not to interrupt the
normal conduct of business and where there is little risk of money laundering or terrorist financing occurring.
In such situations these procedures for the verification of the identity of the customer shall be completed
before the first transaction is carried out.
(3) The service providers engaged in the activity referred to in Paragraph c) of Subsection (1) of Section 1
may be allowed, in connection with insurance policies within the field of life assurance under Schedule No. 2
to the Insurance Act, to carry out the verification of the identity of the beneficiary under the policy and any
other person entitled to receive services from the insurer after the business relationship has been established,
if they were not known at the time of signature of the contract. In that case, verification of identity shall take
place at or before the time of payout or at or before the time the beneficiary intends to exercise rights vested
under the policy.
(4) The service providers engaged in the activity referred to in Paragraph a) of Subsection (1) of
Section 1 and entitled to set up a payment account may open a payment account provided that there are
adequate safeguards in place to ensure that transactions are not carried out by the customer, the customer‟s
agent, proxy or other authorized representative until the completion of the verification of the identity of the
customer and the beneficial owner.
(5) The service providers engaged in the activity referred to in Paragraph l) of Subsection (1) of Section 1
may open a personal account governed under Act XCVI of 1993 on Voluntary Mutual Insurance Funds
(hereinafter referred to as “VMIFA”), provided that there are adequate safeguards in place to ensure that no
services are provided to the customer or the beneficiary until the completion of the verification of the identity
of the customer and the beneficial owner.
(6) Where the service provider is unable to comply with the customer due diligence measures specified
in Sections 7-9, it may not carry out a transaction through a payment account, establish a business
relationship or carry out the transaction, or shall terminate the business relationship with the customer in
question.
(7) If the customer is a legal person or a business association lacking the legal status of a legal person,
following completion of the customer due diligence procedures concerning a person acting in its name and on
its behalf, due diligence procedures shall also be carried out concerning the legal person or a business
association lacking the legal status of a legal person in question.
(8) The customer due diligence measures specified under Sections 7-9 shall not apply where:
a) the service provider has already completed the customer due diligence procedures specified under
Sections 7-9 relating to the customer, the customer‟s agent, proxy or other authorized representative in
connection with previous transactions;
b) the service provider has already carried out the verification of the identity of the customer, the
customer‟s agent, proxy or other authorized representative in connection with current transactions in
accordance with Subsections (4)-(7) of Section 7; and
c) no changes have taken place in the particulars listed under Subsection (2) of Section 7 and Subsection
(2) of Section 8.
Simplified Customer Due
Diligence
Section 12
(1) In the cases referred to in Paragraphs a), b) and d) of Subsection (1) of Section 6, service providers are
required to carry out the customer due diligence measures specified in Section 10 where the customer:
a) is a service provider engaged in carrying out the activities referred to in Paragraphs a)-e) and l) of
Subsection (1) of Section 1 in the territory of the European Union, or a service provider that is engaged in the
activities referred to in Paragraphs a)-e) and l) of Subsection (1) of Section 1 and that is situated in a third
country which imposes requirements equivalent to those laid down in this Act and supervised for compliance
with those requirements;
b) is a listed company whose securities are admitted to trading on a regulated market in one or more
Member States, or a listed company from a third country that is subject to disclosure requirements consistent
with Community legislation;
c) is a supervisory body mentioned under Section 5;
d) is a central government body or a local authority specified in Section 1 of Act LVII of 2006 on Central
Administration Authorities, and on the Legal Status of Members of the Government and State Secretaries,
other than those mentioned in Paragraph c);
e) is a body of the European Community (the European Parliament, the Council, the Committee, the Court,
the European Court of Auditors), the European Economic and Social Committee, the Committee of the
Regions, the European Central Bank or the European Investment Bank.
(2) Where a third country meets the conditions laid down in Paragraphs a)-b) of Subsection (1), the service
provider shall inform the competent supervisory body mentioned under Section 5, which is to forward that
information to the minister in charge of the money, capital and insurance markets (hereinafter referred to as
“minister”) without delay.
(3) The minister shall inform the Commission and the other Member States of cases where he considers
that a third country meets the conditions laid down in Paragraphs a)-b) of Subsection (1).
Section 13
(1) In the cases referred to in Paragraphs a), b) and d) of Subsection (1) of Section 6, service providers are
required to carry out the customer due diligence measures specified in Section 10 in respect of:
a) insurance policies within the field of life assurance under Schedule No. 2 to the Insurance Act, where
the annual premium is no more than two hundred and sixty thousand forints or the single premium is no more
than six hundred and fifty thousand forints;
b) insurance policies for pension schemes if there is no surrender clause and the funds payable to the
insured person cannot be used as collateral for any credit or loan arrangement.
(2) Where a party entering into a contract with an insurance company purchases life insurance under the
same policy to the benefit of more than one person (group insurance), the insurance company in this case is
only required to apply customer due diligence measures for identifying the contracting party only.
(3) An insurance company shall not be required to apply customer due diligence measures for identifying a
customer whose identity has already been established by an independent insurance intermediary for the same
purpose.
Enhanced Customer Due Diligence
Section 14
(1) Service providers are required to record all data and particulars specified in Subsections (2)-(3) of
Section 7, where the customer has not been physically present for identification purposes or for the
verification of his identity.
(2) For the purposes of verification of the identity of the customer, the customer is required to submit to
the service provider certified copies of the documents specified in Subsection (4) of Section 7 containing the
data specified in Subsections (2)-(3) of Section 7.
(3) Certified copies of the documents referred to in Subsection (2) shall be accepted for the verification of
the identity of the customer if:
a) it was prepared by the officer of a Hungarian consular post or by a notary public, and certified
accordingly; or
b) the officer of a Hungarian consular post or the notary public has provided an endorsement for the copy
to verify that the copy is identical to the original presented; or
c) the copy was prepared by an authority of the country where it was issued, if such authority is
empowered to make certified copies and - unless otherwise provided for by an international agreement - the
competent Hungarian consulate officer has provided a confirmatory certification of the signature and seal of
the said authority.
Section 15
(1) Service providers engaged in the activity referred to in Paragraph a) of Subsection (1) of Section 1 are
required, before establishing correspondent banking relationships with respondent institutions from third
countries, to:
a) assess, evaluate and analyze the respondent third-country service provider‟s anti-money laundering and
anti-terrorist financing controls;
b) be satisfied that the respondent third-country service provider has verified the identity of and performed
ongoing due diligence on the customers having direct access to accounts of the correspondent and that it is
able to monitor access to the said accounts of the correspondent on an ongoing basis; and
c) be satisfied that the respondent third-country service provider is able to provide relevant customer due
diligence data to the correspondent institution, upon request.
(2) Service providers engaged in the activity referred to in Paragraph a) of Subsection (1) of Section 1,
before establishing any correspondent banking relationships with respondent institutions from third countries,
must obtain approval from the management body defined in their organizational and operational regulations.
(3) Service providers engaged in the activity referred to in Paragraph a) of Subsection (1) of Section 1 are
prohibited to engage in or continue a correspondent banking relationship with a shell bank or with a service
provider that is known to permit its accounts to be used by a shell bank.
Section 16
(1) Customer residing in another Member State or in a third country are required to provide a statement to
whether they are considered politically exposed according to the national law of their country. If a customer
residing in another Member State or in a third country is considered politically exposed, the aforesaid
statement must also indicate the category of politically exposed persons applicable according to Subsection
(2) of Section 4.
(2) Where there is any doubt concerning the veracity of the above-mentioned statement, the service
provider must take measures to check the statement submitted under Subsection (1) in records and registers
which are publicly available in accordance with legal regulations.
(3) In respect of transactions or business relationships with politically exposed persons residing in another
Member State or in a third country, approval from the management body defined in the organizational and
operational regulations is required.
Section 17
(1) With regard to any transaction for the exchange of money involving a sum amounting to five hundred
thousand forints or more, the service provider providing the exchange service shall be required to carry out
the identification procedure with respect to all of the data listed under Subsections (2)-(3) of Section 7 and to
verify the customer‟s identity, and to carry out the customer due diligence measures specified in Sections 8-9.
(2) The transaction document shall indicate the data specified in Subparagraphs aa)-ab) and ad) of
Paragraph a) and in Subparagraphs ba)-bc) of Paragraph b) of Subsection (2) of Section 7, and the Hungarian
residence of non-resident natural persons.
(3) The obligation of taking the due diligence measures specified in Subsection (1) also apply to any series
of related transactions with a combined value of five hundred thousand forints or more. In this case, due
diligence measures shall be carried out in connection with the transaction that brings the total value of the
transactions to the threshold of five hundred thousand forints.
Customer Due Diligence Measures Carried Out by Other Service Providers
Section 18
(1) Service providers shall be authorized to recognize and accept the outcome of customer due diligence
requirements laid down in Sections 7-9, if the customer due diligence measures are carried out by a service
provider that is engaged in the activities referred to in Paragraphs a)-e) and l) of Subsection (1) of Section 1
in the territory of the Republic of Hungary, with the exception of currency exchange offices and money
transmission or remittance offices.
(2) Service providers shall be authorized to recognize and accept the outcome of customer due diligence
requirements laid down in Sections 7-9, if the customer due diligence measures are carried out by a service
provider that is engaged in the activities referred to in Paragraphs a)-e) and l) of Subsection (1) of Section 1,
with the exception of currency exchange offices and money transmission or remittance offices:
a) in the territory of another Member State of the European Union; or
b) in the territory of a third country that meets the conditions laid down in Subsection (6) of this Section
and in Section 19.
(3) Service providers engaged in the activities referred to in Paragraphs g)-h) and m) of Subsection (1) of
Section 1 shall be authorized to recognize and accept the outcome of customer due diligence requirements
laid down in Sections 7-9, if the customer due diligence measures are carried out by a service provider that is
engaged in the activities referred to in Paragraphs g)-h) and m) of Subsection (1) of Section 1 in the territory
of the Republic of Hungary.
(4) Service providers engaged in the activities referred to in Paragraphs g)-h) and m) of Subsection (1) of
Section 1 shall be authorized to recognize and accept the outcome of customer due diligence requirements
laid down in Sections 7-9, if the customer due diligence measures are carried out by a service provider that is
engaged in the activities referred to in Paragraphs g)-h) and m) of Subsection (1) of Section 1:
a) in the territory of another Member State of the European Union; or
b) in the territory of a third country that meets the conditions laid down in Subsection (6) of Section 19.
(5) The outcome of customer due diligence requirements specified in Subsections (2) and (4) may be
recognized and accepted even if the documents or data on which these requirements have been based are
different to those required under this Act.
(6) The outcome of customer due diligence requirements specified in Subsections (2) and (4) may be
recognized and accepted, if the customer due diligence measures are carried out by a service provider - with
the exception of currency exchange offices and money transmission or remittance offices - that is engaged in
the activities referred to in Paragraphs a)-h), l) and m) of Subsection (1) of Section 1 in a third country and
that:
a) is subject to mandatory professional registration; and
b) applies customer due diligence requirements and record keeping requirements as laid down or
equivalent to those laid down in this Act and its compliance with the requirements of this Act is supervised in
accordance with provisions laid down or equivalent to those laid down in this Act, or it is situated in a third
country which imposes equivalent requirements to those laid down in this Act.
(7) Where a third country meets the conditions laid down in Paragraph b) of Subsection (6), the service
provider shall inform the competent supervisory body mentioned under Section 5. A competent supervisory
body mentioned under Section 5 shall forward that information to the minister without delay.
(8) The minister shall inform the Commission and the other Member States of cases where he considers
that a third country meets the conditions laid down in Paragraph b) of Subsection (6).
Section 19
(1) In connection with Subsections (1)-(4) of Section 18, the service provider shall be authorized to make
available to other service providers data and information obtained for the purposes of due diligence
requirements laid down in Sections 7-9 subject to the prior consent of the customer affected.
(2) In connection with Subsections (1)-(4) of Section 18, the service provider that has carried out the
customer due diligence measures shall be authorized to make available - at the written request of the service
provider recognizing and accepting the outcome of customer due diligence requirements - data and
information obtained for the purposes of verification of the identity of the customer and the beneficial owner,
and copies of other relevant documentation on the identity of the customer or the beneficial owner to other
service providers subject to the prior consent of the customer affected.
Section 20
In connection with Subsections (1)-(4) of Section 18, as regards compliance with the requirements set out
in Sections 7-9, the ultimate responsibility for the customer due diligence procedure remains with the service
provider that has accepted the outcome of the customer due diligence procedure.
Section 21
Sections 18-20 shall not apply to outsourcing or agency relationships where, on the basis of a contractual
arrangement, the outsourcing service provider or agent is to be regarded as part of the service provider.
Information on the Payer Accompanying Transfers of Funds
Section 22
(1) In accordance with Article 14 of the Regulation, the Authority and the national financial intelligence
unit shall function as the “authorities responsible for combating money laundering or terrorist financing”.
(2) Payment service providers shall respond to inquiries from the authorities referred to in Subsection (1)
above acting in their vested official capacity concerning the information on the payer as specified in Article 4
of the Regulation for the purposes specified in Article 14 of the Regulation.
(3) In accordance with Article 15 (2) of the Regulation, the Authority shall function as “the authority
responsible for application”, and as the “competent authority” referred to in Article 15 (3) of the Regulation,
and the national financial intelligence unit shall have the same functions with respect to the MNB.
(4) The Authority shall carry out the supervisory procedure in due observation of the provisions of the Act
on the General Rules of Administrative Proceedings, subject to the derogations set out in Act CXXXV of
2007 on the Hungarian Financial Supervisory Authority (hereinafter referred to as “HFSA”), furthermore, the
national financial intelligence unit shall act in accordance with the Act on the General Rules of
Administrative Proceedings.
(5) In the event of any infringement of the provisions of the Regulation or non-compliance with the
obligations set out in the Regulation, the Authority shall take the measures specified under Paragraphs b)-e)
of Subsection (1) of Section 35 and the measures specified below, consistent with the weight of the
infringement:
a) call upon the service provider to take the measures necessary for compliance with the provisions of the
Regulation, and to eliminate the discrepancies;
b) prohibit the service provider from engaging in the provision of transfer of funds services before the
infringement is terminated.
(6) The fine referred to in Paragraph e) of Subsection (1) of Section 35 may be imposed upon any service
provider for non-compliance with the provisions contained in resolutions adopted under the Regulation or by
the Authority, and for partial or late compliance with the said provisions.
(7) In the event of any infringement of the provisions of the Regulation or non-compliance with the
obligations set out in the Regulation, the national financial intelligence unit shall apply the measures
specified under Paragraphs c)-d) of Subsection (1) of Section 35 consistent with the weight of the
infringement, and may call upon the service provider to take the measures necessary for compliance with the
provisions of the Regulation, and to eliminate the discrepancies.
(8) Where Article 3 (4) and Article 5 (4) of the Regulation apply, the amount transferred shall be
translated to euro based on the official exchange rate quoted by the MNB in effect on the day when the
transfer order in question is received, or by the exchange rate published in the MNB Bulletin for the
conversion of currencies that are not quoted by the MNB to euro in effect on the day when the transfer order
in question is received.
(9) The “national identity number” referred to in Article 4 (2) of the Regulation shall be construed as the
numbers specified in Subparagraph ad) of Paragraph a) and in Subparagraph bc) of Paragraph b) of
Subsection (2) of Section 7.
(10) Service providers are not required to apply the provisions of the Regulation with respect to transfer of
funds services carried out inside the Republic of Hungary that are in compliance with Article 3 (6) of the
Regulation.
Reporting Obligations
Section 23
(1) In the event of noticing any information, fact or circumstance that may suggest money laundering or
terrorist financing, the person(s) defined in Paragraph b) of Subsection (2) of Section 1 shall, without delay,
file a report to the person referred to in Subsection (2) of this Section. The report shall contain:
a) the data and information the service provider has recorded pursuant to Sections 7-9; and
b) a brief description of the information, fact or circumstance suggesting money laundering or terrorist
financing.
(2) Service providers shall, depending on the structure of the organization, designate one or more persons
(hereinafter referred to as “liaison officer”) to forward without delay the reports received from the persons
referred to in Paragraph b) of Subsection (2) of Section 1 to the national financial intelligence unit. Service
providers are required to notify the national financial intelligence unit concerning the appointment of the
liaison officer, including the name and the position of such officer, and any subsequent changes therein,
within five working days of the date of appointment or the effective date of the change.
(3) The service provider shall dispatch the report to the national financial intelligence unit in the form of a
secure electronic message, and the national financial intelligence unit shall confirm receipt of the report in
the form of an electronic message sent to the reporting service provider without delay.
(4) Prior to dispatch of the report referred to in Subsection (2), the service provider may not carry out a
transaction.
(5) The service provider shall comply with the obligation of reporting referred to in Subsection (2) after
carrying out the transaction, if the carrying out of the transaction cannot be prevented as under Subsection (4)
or the filing of the report before carrying out the transaction is likely to jeopardize efforts to trace the
beneficial owner as part of an impending investigation.
(6) In the event of noticing any information, fact or circumstance that may suggest money laundering
or terrorist financing, the national financial intelligence unit shall have powers to make a request - acting
under its own initiative or in order to fulfill the requests made by a foreign financial intelligence unit - to a
service provider for data and information that are considered bank secrets, payment secrets, securities secrets,
fund and insurance secrets, occupational retirement pension secrets, and trade secrets with respect to service
providers engaged in the activity referred to Paragraph e) of Subsection (1) of Section 1, which the service
provider must supply.
(7) In the event of noticing any information, fact or circumstance that may suggest money laundering or
terrorist financing, the national financial intelligence unit shall have powers to make a request - acting under
its own initiative or in order to fulfill the requests made by a foreign financial intelligence unit - to the tax
authority or the customs authority for data and information that are considered tax secrets or customs secrets,
which the tax authority or the customs authority must supply.
(8) Pursuant to Subsections (6)-(7), the national financial intelligence unit may release data and
information to a foreign national financial intelligence unit if it is able to guarantee equivalent or better legal
protection of such data and information than the protection afforded under Hungarian law.
(9) If a report is filed in good faith, the person referred to in Paragraph b) of Subsection (2) of Section 1
and the liaison officer (hereinafter referred to as “notifier”) shall not be held liable if the report ultimately
proves to be unsubstantiated.
(10) The national financial intelligence unit shall post an announcement concerning the success rate
related to the reports and any proposals it may have to improve such success rate on its official website semi-
annually.
Section 24
(1) The service provider shall suspend a transaction where it knows, suspects or has reasonable grounds to
suspect that money laundering or terrorist financing is being or has been committed or attempted, and if
prompt action by the national financial intelligence unit is deemed appropriate and necessary to examine
certain corresponding information, fact or circumstance that may suggest money laundering or terrorist
financing. In this case, the service provider shall immediately notify the national financial intelligence unit to
investigate the cogency of the report.
(2) If the national financial intelligence unit supplies any information, fact or circumstance suggesting
money laundering or terrorist financing in the form of a secure electronic message to a service provider
relating to a specific transaction, the provisions of such information shall be construed to elicit prompt action
on the part of the national financial intelligence unit to examine the information in question, unless otherwise
declared by the national financial intelligence unit at the time when supplying the said information.
(3) The service provider shall dispatch the aforesaid notice to the national financial intelligence unit in the
form of a secure electronic message, upon which the national financial intelligence unit shall dispatch a read
receipt by way of electronic means without delay to the sending service provider.
(4) The national financial intelligence unit shall investigate the report:
a) within one working day of receipt of the report if it pertains to a domestic transaction;
b) within two working days of receipt of the report if it pertains to a non-domestic transaction.
(5) The national financial intelligence unit shall - in the course of the investigation launched under
Subsection (4) - inform the reporting service provider in writing:
a) concerning the actions taken in accordance with the Act on Criminal Proceedings;
b) of the fact of having avoided to take any action pursuant to the Act on Criminal Proceedings.
(6) The service provider shall carry out a suspended transaction upon receipt of notice from the national
financial intelligence unit in accordance with Paragraph b) of Subsection (5), or following the expiry of the
time limits specified in Subsection (4) in the absence of a notice from the national financial intelligence unit.
(7) The service provider and the national financial intelligence unit referred to in Subsection (2) - if acting
in good faith - shall not be held liable for the suspension of a transaction if it ultimately proves to be
unsubstantiated, and the transaction can be carried out on the basis of what is contained in Subsection (6).
Section 25
If the competent supervisory body mentioned under Section 5 obtains any information, fact or
circumstance during its regulatory proceedings that is to be reported according to Subsection (1) of Section
23, it shall notify the national financial intelligence unit without undue delay.
Section 26
(1) The national financial intelligence unit shall be authorized to use the information obtained under this
Act only for the purposes of prevention and combating money laundering and terrorist financing, and for the
purposes of the investigation of acts of terrorism [Section 261 of Act IV of 1978 on the Criminal Code
(hereinafter referred to as “Criminal Code”)], unauthorized financial activities (Section 298/D of the Criminal
Code), money laundering (Sections 303-303/A of the Criminal Code), failure to comply with the reporting
obligation related to money laundering (Section 303/B of the Criminal Code), tax fraud (Section 310 of the
Criminal Code), embezzlement (Section 317 of the Criminal Code), fraud (Section 318 of the Criminal Code)
and misappropriation of funds (Section 319 of the Criminal Code), and to disclose such information to other
investigating units, the public prosecutor, the national security service or a foreign financial intelligence unit.
(2) The national financial intelligence unit shall keep records on the information disclosed according to
Subsection (1). The aforesaid data transfer records shall be retained for a period of five years from the time of
disclosure.
(3) The data transfer records shall contain:
a) the personal identification data of the natural person affected, or the information necessary for the
identification of the legal person or business association lacking the legal status of a legal person;
b) the data processor‟s registration number;
c) the date and time of disclosure;
d) the purpose and legal grounds of disclosure, and the information supplied;
e) the name of the person or party requesting the data.
Prohibition of Disclosure
Section 27
(1) The notifier and the national financial intelligence unit shall not disclose to the customer concerned or
to other third persons the fact that information has been transmitted in accordance with Section 23, the
contents of such information, the fact that the transaction has been suspended under Section 24, the name of
the notifier, or whether a money laundering or terrorist financing investigation is being or may be carried out
on the customer, and shall ensure that the filing of the report, the contents thereof, and the identity of the
person filing the report remain confidential.
(2) The prohibition laid down in Subsection (1) shall not include disclosure to the supervisory body
mentioned under Section 5, including the investigating authority conducting the criminal proceedings.
(3) The prohibition laid down in Subsection (1) shall not prevent disclosure between institutions from
Member States, or from third countries in connection with supervision on a consolidated basis conducted
under the CIFE, Act CXX of 2001 on the Capital Market and the Insurance Act, or on the supplementary
supervision of a financial conglomerate, which impose requirements upon such institutions equivalent to
those laid down in this Act, and are supervised for compliance with those requirements.
(4) The prohibition laid down in Subsection (1) shall not prevent disclosure between service providers
engaged in the activities referred to in Paragraphs g)-h) and m) of Subsection (1) of Section 1 from Member
States, or from third countries which impose requirements equivalent to those laid down in this Act, who
perform their professional activities within the same legal person or a network.
(5) The prohibition laid down in Subsection (1) shall not prevent disclosure between service providers
engaged in the activities referred to in Paragraphs a)-e), g)-h), l) and m) of Subsection (1) of Section 1, and
shall not prevent disclosure between the two or more service providers involved provided that:
a) it is related to the same customer and the same transaction;
b) of the two or more service providers involved, at least one is engaged in activities governed by this Act,
while the other service providers are situated in a Member State, or in a third country which imposes
requirements equivalent to those laid down in this Act;
c) the service providers involved are engaged in the same activity referred to in Subsection (1) of Section
1; and
d) the service providers involved are subject to obligations as regards professional secrecy and personal
data protection equivalent to those laid down in this Act.
(6) Where a third country meets the conditions laid down in Subsections (3)-(5) above, the service
providers engaged in the activities referred to in Paragraphs a)-e), g)-h), l) and m) of Subsection (1) of
Section 1 shall inform the competent body exercising supervision under Paragraphs a)-b), d)-e), g) of Section
5. The competent body exercising supervision under Paragraphs a)-b), d)-e), g) of Section 5 shall forward
that information to the minister without delay.
(7) A The minister shall inform the Commission and the other Member States of the cases referred to
under Subsection (6).
Record Keeping and Statistical Data
Section 28
(1) Service providers are required to keep on file the data and documents they have obtained in the process
of discharging their obligations prescribed under Sections 7-10 and Section 17, or copies of such documents,
records of compliance with the notification and disclosure requirements specified in Section 23, and the
documents evidencing the the carrying out and suspension of transactions by virtue of Section 24, or copies
of such documents, for a period of eight years from the time of entry into the records or the time of
notification (suspension). The time limit for keeping the data or documents, or their copies, obtained under
Paragraph a) of Subsection (1) of Section 6 shall commence upon the time of termination of the business
relationship.
(2) The service providers engaged in the activities referred to in Paragraphs a)-e), l) and m) of Subsection
(1) of Section 1 shall keep records of all cash transactions worth three million six hundred thousand forints or
more (whether in forints or any other currency) in the register mentioned in Subsection (1) for a period of
eight years.
Section 29
(1) The national financial intelligence unit shall ensure that it is able to review the effectiveness of its
systems to combat money laundering or terrorist financing by maintaining comprehensive statistics on
matters relevant to the effectiveness of such systems.
(2) The register specified in Subsection (1) shall contain:
a) the number of suspicious transaction reports made under Section 23, and the number of disclosures;
b) the number of transactions suspended under 24;
c) the number of cases for the freezing of assets in connection with terrorist financing under the Act on the
Implementation of Restrictive Measures Imposed by the European Union Relating to Liquid Assets and
Other Financial Interests and the number of cases for the freezing of assets by court order, and the forint
value of the funds and economic resources frozen by court order;
d) the number of suspicious transaction reports made under Section 23 upon which the national financial
intelligence unit took any action, and the number of cases investigated and prosecuted;
e) the number of cases investigated for suspicion of money laundering (Sections 303-303/A of the
Criminal Code) and acts of terrorism (Section 261 of the Criminal Code), and the number of suspects;
f) in the criminal proceedings referred to in Paragraph e):
fa) the number of cases and the number of persons prosecuted;
fb) the number of court verdicts and the number of persons convicted, the number of cases where any
property has been frozen, seized or confiscated, the value of property seized or confiscated, and how much
property has been frozen, seized or confiscated.
(3) The General Prosecutor‟s Office shall supply information to the national financial intelligence unit
relating to Subparagraph fa) of Paragraph f) of Subsection (2), the number of final court verdicts concerning
the freezing of assets under Paragraph c) of Subsection (2), the forint value of the funds and economic
resources frozen by court order along with the information under Subparagraph fb) of Paragraph f) by 1 July
of each calendar year as pertaining to the previous calendar year.
(4) Records of the data referred to in Paragraphs a)-d) of Subsection (2) shall be broken down according to
profession.
(5) The national financial intelligence unit shall post the aforesaid statistical reports on its official website
annually.
Measures in Connection
with Branches and Subsidiaries Located in Third Countries
Section 30
(1) The service providers engaged in the activities referred to in Paragraphs a)-e) and l) of Subsection (1)
of Section 1 are required to apply in their branches and subsidiaries located in third countries measures at
least equivalent to those laid down under Sections 6-11, Section 28 and this Section.
(2) The service providers engaged in the activities referred to in Paragraphs a)-e) and l) of Subsection (1)
of Section 1 shall keep their branches and subsidiaries located in third countries informed concerning their
internal control and information system (Section 31), and the contents of their internal policies (Section 33).
(3) Where the legislation of the third country does not permit application of such equivalent measures as
referred to in Subsection (1), the service providers engaged in the activities referred to in Paragraphs a)-e)
and l) of Subsection (1) of Section 1 shall so inform the competent body exercising supervision under
Paragraphs a)-b) of Section 5, and the said competent body shall forward that information to the minister
without delay.
(4) The minister shall inform the Commission and the other Member States of cases where the legislation
of the third country does not permit application of the measures required under Subsection (1).
(5) Where the legislation of the third country does not permit application of the measures required under
Subsection (1), the service providers engaged in the activities referred to in Paragraphs a)-e) and l) of
Subsection (1) of Section 1 are required to take additional measures, such as to assess, evaluate and analyze
their branches and subsidiaries located in third countries.
Internal Control and Information Systems, Special Training Programs
Section 31
Service providers with employees participating in carrying out the activities listed under Subsection (1) of
Section 1 are required to establish adequate and appropriate policies and procedures of customer due
diligence, reporting, record keeping, internal control and information systems in order to forestall and prevent
business relationships, transactions and operations related to money laundering or terrorist financing.
Section 32
(1) Service providers with employees participating in carrying out the activities listed under Subsection (1)
of Section 1 are required to take appropriate measures so that their relevant employees are aware of the
provisions in force relating to money laundering and terrorist financing, that they are able to recognize
operations, business relationships and transactions which may be related to money laundering or terrorist
financing and to instruct them as to how to proceed in such cases when noticing information, facts or
circumstances that may suggest money laundering or terrorist financing.
(2) Service providers with employees participating in carrying out the activities listed under Subsection (1)
of Section 1 are required to take appropriate measures so that their relevant employees are aware of the
provisions of the Act on the Implementation of Restrictive Measures Imposed by the European Union
Relating to Liquid Assets and Other Financial Interests, so that they are able to proceed in accordance with
the provisions contained therein.
(3) In order to discharge the obligations set out in Subsections (1)-(2), service providers with employees
participating in carrying out the activities listed under Subsection (1) of Section 1 are required to ensure the
participation of their relevant employees in special ongoing training programs.
Internal Policies
Section 33
(1) Service providers are required to lay down the rules relating to discharging their functions conferred in
this Act in internal policies (hereinafter referred to as “by-laws”).
(2) The competent supervisory body mentioned under Section 5 shall grant approval for the by-laws if
they contain the mandatory contents set out in this Act and in the decree implementing it, and if they are not
contrary to any legal regulation.
(3) The supervisory body mentioned under Section 5 shall provide non-binding recommendations based
on standard by-law models - in collaboration with the national financial intelligence unit and in agreement
with the minister - for drawing up the by-laws.
(4) Service providers engaged in trading in goods may undertake to discharge the obligations set out in
this Act by submission of the by-laws to the authority of trade and commerce. The authority of trade and
commerce shall grant approval for the by-laws and, at the same time, register the service provider in
question. Only registered service providers engaged in trading in goods shall be authorized to accept cash
payments of three million six hundred thousand forints or more.
Supervision, Measures
Section 34
(1) The supervisory bodies mentioned under Paragraphs a)-c), f) and g) of Section 5 shall, in the process of
exercising supervisory functions, monitor the compliance of service providers with the provisions of this Act.
(2) The supervisory bodies mentioned under Paragraphs c), f) and g) of Section 5 shall carry out their
respective supervisory functions in accordance with the Act on the General Rules of Administrative
Proceedings, the supervisory body mentioned under Paragraph a) of Section 5 shall carry out its supervisory
functions in accordance with the Act on the General Rules of Administrative Proceedings and the GCFI, and
the supervisory body mentioned under Paragraph b) of Section 5 shall carry out its supervisory functions in
accordance with the Act on the General Rules of Administrative Proceedings and Act LVIII of 2001 on the
Magyar Nemzeti Bank, in all cases subject to the exceptions set out in this Act.
(3) The supervisory body mentioned under Paragraph d) of Section 5 shall carry out its supervisory
functions in accordance with Act LXXV of 2007 on the Chamber of Hungarian Auditors, the Activities of
Auditors, and on the Public Oversight of Auditors (hereinafter referred to as “Auditors Act”).
(4) The supervisory body mentioned under Subparagraph ea) of Paragraph e) of Section 5 shall carry out
its supervisory functions in accordance with Act XI of 1998 on Attorneys (hereinafter referred to as
“Attorneys Act”), and the supervisory body mentioned under Subparagraph eb) of Paragraph e) of Section 5
shall carry out its supervisory functions in accordance with Act XLI of 1991 on Notaries Public (hereinafter
referred to as “NPA”).
Section 35
(1) In the event of any infringement of the provisions of this Act or non-compliance with the obligations
set out in this Act, the supervisory bodies mentioned under Paragraphs a)-c), f) and g) of Section 5 shall take
the following measures consistent with the weight of the infringement:
a) call upon the service provider to take the measures necessary for compliance with the provisions of this
Act, and to eliminate the discrepancies;
b) advise the service provider:
ba) to ensure the participation of their relevant employees (managers) carrying out the activities listed
under Subsection (1) of Section 1 in special ongoing training programs, or to hire employees (managers) with
the appropriate professional skills required for those activities;
bb) to draw up the by-laws within the prescribed deadline, or to adapt it according to specific criteria;
c) issue a warning to the service provider;
d) order the service provider to cease the unlawful conduct;
e) in addition to or independent of the measures specified in Paragraphs a)-d), impose a fine of minimum
two hundred thousand and maximum five million forints upon the service providers engaged in the activities
under Paragraphs a)-e) and l) of Subsection (1) of Section 1, and a fine of minimum one hundred thousand
and maximum one million forints upon the service providers engaged in the activities under Paragraphs f),
h)-i), j) and k) of Subsection (1) of Section 1.
(2)
(3) The proceeds from fines imposed by the supervisory bodies mentioned under Paragraphs c), f) and g)
of Section 5 must be used exclusively for the following purposes:
a) training experts;
b) promoting the preparation and publication of studies on the supervisory activities mentioned under
Paragraphs c), f) and g) of Section 5;
c) providing information for customers;
d) ongoing training of the staff of the national financial intelligence unit in the special knowledge required
in connection with this Act.
(4) The measures defined under Subsection (1) shall be imposed upon a service provider where a director
of the service provider - if a legal person or a business association lacking the legal status of a legal person -
has committed the infringement for the benefit of the service provider.
(5) The measures defined under Subsection (1) shall be imposed upon a service provider where an
employee of the service provider - if a legal person or a business association lacking the legal status of a legal
person - has committed the infringement for the benefit of the service provider, and it could have been
prevented by the appropriate supervision or control that is required of the director of the service provider.
Special Provisions Relating
to Attorneys and Notaries Public
Section 36
(1) The obligations of customer due diligence and reporting prescribed in this Act shall apply to attorneys
- with the exception set out in Subsection (3) - if they hold any money or valuables in custody or if they
provide legal services in connection with the preparation and execution of the following transactions in
accordance with Subsection (1) of Section 5 of the Attorneys Act:
a) buying or selling any participation (share) in a business association or other economic operator;
b) buying or selling real estate properties;
c) founding, operating or dissolving a business association or other economic operator.
(2) The customer due diligence and reporting requirements prescribed in this Act shall apply to notaries
public - with the exception set out in Subsection (4) - if he provides safe custody services or if he provides
notarial services in connection with the preparation and execution of the following transactions in accordance
with the NPA:
a) buying or selling any participation (share) in a business association or other economic operator;
b) buying or selling real estate properties;
c) founding, operating or dissolving a business association or other economic operator.
(3) The obligations prescribed in this Act shall not apply to attorneys:
a) in the event of obtaining any information, or learning about any fact or circumstance suggesting money
laundering or terrorist financing in connection with providing the defense in criminal proceedings or legal
representation before a court - other than the court of registry - during any stage of such defense or
representation or at any time thereafter;
b) in the event of obtaining any information, or learning about any fact or circumstance suggesting money
laundering or terrorist financing in connection with the defense or legal representation referred to in
Paragraph a) while providing legal advice relating to the opening of such proceedings.
(4) The obligations prescribed in this Act shall not apply to notaries public:
a) in the event of obtaining any information, or learning about any fact or circumstance suggesting money
laundering or terrorist financing while providing legal advice relating to the opening of such proceedings;
b) in connection with nonjudicial proceedings.
Section 37
(1) Attorneys and notaries public shall file the report prescribed under Section 23 with the regional bar
association or regional branch, respectively. The employees of attorneys and notaries public (including
assistant attorneys) shall file the report with the attorney or notary public who exercises employer‟s rights,
who shall forward the report forthwith to the regional bar association. Employees of law firms shall report to
the person designated by the members‟ meeting, who shall forward the report forthwith to the bar association
with which the law firm is registered.
(2) The presidents of the regional bar associations and regional branches shall appoint a person to be
responsible for promptly forwarding the reports received from the persons referred to in Paragraph b) of
Subsection (1) of Section 2 to the national financial intelligence unit. The regional bar associations and
regional branches are required to promptly notify the national financial intelligence unit concerning the
appointment of the liaison officer and also when the appointed liaison officer is replaced.
(3) With regard to law firms, the members‟ meeting may decide whether the obligations prescribed in
Subsection (1) of Section 23 and in Sections 31-32 are to be fulfilled by the law firm or by the members.
Section 38
(1) In respect of discharging the responsibilities prescribed in this Act, the Hungarian Bar Association
shall draw up uniform policies for individual lawyers and single-member law firms that shall be treated as the
internal policies of individual lawyers and single-member law firms in conformity with Section 33. The
aforesaid uniform policies shall be approved by the minister in charge of the judicial system.
(2) In respect of discharging the responsibilities prescribed in this Act, the law firms not mentioned in
Subsection (1) are required to draw up uniform policies, and to present them for approval to the competent
regional bar association. The Hungarian Bar Association shall draw up standard policies in compliance with
Subsection (3) of Section 33, and it shall be approved by the minister in charge of the judicial system.
(3) In respect of discharging the responsibilities prescribed in this Act, the Hungarian Association of
Notaries Public shall draw up guidelines for notaries public that shall be treated as the internal policies of
notaries public.
(4) Fulfillment of the reporting obligation by attorneys and notaries public shall not constitute a violation
of the confidentiality requirements prescribed in specific other legislation.
(5) In the application of this Act, notaries public shall not be subject to the obligation laid down in
Subsection (2) of Section 3 of the NPA.
Closing and Transitional
Provisions
Section 39
(1) This Act - with the exceptions set out in Subsections (2)-(9) - shall enter into force on 14 December
2007.
(2)
(3) Sections 1-38, Section 40, Sections 42-43, Sections 46-51, Sections 54-55 and Section 56 shall enter
into force on 15 December 2007.
(4) Subsection (10) shall enter into force on 16 December 2007.
(5) Subsection (12) and Section 52 shall enter into force on 2 January 2008.
(6) Subsection (13) shall enter into force on 3 January 2008.
(7) Subsections (1)-(2) of Section 44 shall enter into force on 15 December 2008.
(8) Subsection (3) of Section 44 shall enter into force on 1 January 2009.
(9) Subsection (11) shall enter into force on 2 January 2009.
(10)
(11)
(12)
(13)
Section 40
Section 41
Section 42
By way of derogation from Subsection (6) of Section 11, the service provider must refuse to carry out
transactions following 1 January 2009:
a) for customers with whom the business relationship was established prior to the time of this Act entering
into force;
b) for customers who failed to appear in person or by way of a representative at the service provider for
the purpose of customer due diligence procedures; and
c) if the outcome of the customer due diligence requirements specified under Sections 7-10 is not fully
available.
Section 43
(1) The minister is hereby authorized to publish - by way of a decree - the list of third countries which
impose requirements equivalent to those laid down in this Act, and to publish - by way of a decree - the list
of third countries whose nationals are not permitted to benefit from the simplified customer due diligence
procedures by virtue of the Commission decisions adopted according to Article 40(4) of Directive
2005/60/EC.
(2) The minister is hereby authorized to decree the mandatory layout of internal policies.
Section 44
Section 45
(1) Following the entry of this Act into force, the competent supervisory body mentioned under Section 5
shall make available the standard policies within forty-five days after the time of this Act entering into force.
(2) Service providers already existing at the time of this Act entering into force shall be required to adapt
their internal policies within ninety days of the time of this Act entering into force to comply with the
provisions of this Act.
(3) The service providers listed under Paragraphs a)-e), i) and l) of Subsection (1) of Section 1 that are
established after the time of this Act entering into force shall submit their internal policies for approval to the
competent supervisory body mentioned under Section 5 together with the license application in addition to
satisfying the requirements set out in specific other legislation.
(4) The service providers commencing the activities defined in Paragraph a) of Subsection (1) of
Section 1 by way of the pursuit of the payment services described in Paragraph g) of Point 9 of Chapter I of
Schedule No. 2 to the CIFE, and the service providers commencing the activities defined in Paragraphs f)-h),
j) and m) of Subsection (1) of Section 1 shall be required to draw up their internal policies and submit it for
approval to the competent supervisory body mentioned under Section 5 within ninety days following the
commencement of operations.
(5) The Hungarian Bar Association shall draw up internal policies for individual lawyers and single-
member law firms, and the Hungarian Association of Notaries Public shall draw internal policies for notaries
public within ninety days following the time of this Act entering into force.
(6) Service providers engaged in trading in goods, if not listed in the register referred to in Subsection (4)
of Section 33, shall be authorized to accept cash payments of three million six hundred thousand forints or
more until 15 March 2008.
Sections 46-51
Section 52
Sections 53-55
Compliance with the Acquis
Section 56
(1) This Act serves the purpose of conformity with the following legislation of the Communities:
a) Directive 2005/60/EC of the European Parliament and of the Council of 26 October 2005 on the
prevention of the use of the financial system for the purpose of money laundering and terrorist financing;
b) Commission Directive 2006/70/EC of 1 August 2006 laying down implementing measures for Directive
2005/60/EC of the European Parliament and of the Council as regards the definition of „politically exposed
person‟ and the technical criteria for simplified customer due diligence procedures and for exemption on
grounds of a financial activity conducted on an occasional or very limited basis.
(2) This Act contains provisions for the implementation of Regulation (EC) No. 1781/2006 of the
European Parliament and of the Council of 15 November 2006 on information on the payer accompanying
transfers of funds.
